The Trump Administration's Plan To Restart Student Loan Collections Sets Off Alarm Bells For Millions Of Illinois Residents Behind On Payments.
For over six years, since the COVID-19 pandemic started, federal officials had opted not to collect on defaulted student loans. However, in a shocking turn of events, President Donald Trump's administration announced last spring that it would resume wage garnishment in order to recoup taxpayer dollars. As a result, 170,000 Illinois residents who are behind on their student loan payments and at risk of having their wages seized are facing a dire situation.
The federal government considers loans to be in default when a borrower hasn't made payments for about nine months. Wage garnishment involves seizing a portion of someone's paycheck to help cover the cost of their debt. Sabrina Calazans, executive director of the Student Debt Crisis Center, warned that this action could be disastrous for borrowers who are already struggling.
"This is a really, really bad time for so many folks," Calazans said, noting that these collections are intersecting with skyrocketing healthcare premiums, high unemployment, and the increasing cost of groceries and other necessities. "It just becomes this huge nightmare for so many families."
According to a fall 2025 survey by The Institute For College Access and Success, Black borrowers and borrowers with associate degrees are disproportionately affected. If you're at risk of default, it's essential to know what to do.
Before default, there's delinquency. Missing a payment deadline can lead to delinquency, which is reported to major credit bureaus. This can make it challenging to obtain credit cards, rent an apartment, or buy a home.
To prevent this, ensure your contact information is up-to-date in both your loan servicer and Federal Student Aid accounts. This will help you stay informed about payment deadlines and changes to your loan status.
If you're already behind on payments, there are options available to help. Loan rehabilitation involves making nine payments over a 10-month period to bring your loans out of default. Consolidation is another option, which creates a new loan and puts you back into good standing.
However, beware of the SAVE plan, which was recently discontinued by the Trump administration. This move has left many borrowers struggling with their debts.
If you receive a notice of wage garnishment, you can appeal the decision through the federal default resolution group. However, this process may soon change.
The Illinois Student Loan Ombudsman office and representatives in Congress can also provide assistance if needed. "The default resolution group is supposed to help you," Calazans said. But if that doesn't happen, lawmakers' offices can intervene.
In light of these developments, borrowers are advised to take immediate action to prevent wage garnishment or get out of it. By being proactive and informed, Illinois residents can navigate this challenging situation and find a way forward.
For over six years, since the COVID-19 pandemic started, federal officials had opted not to collect on defaulted student loans. However, in a shocking turn of events, President Donald Trump's administration announced last spring that it would resume wage garnishment in order to recoup taxpayer dollars. As a result, 170,000 Illinois residents who are behind on their student loan payments and at risk of having their wages seized are facing a dire situation.
The federal government considers loans to be in default when a borrower hasn't made payments for about nine months. Wage garnishment involves seizing a portion of someone's paycheck to help cover the cost of their debt. Sabrina Calazans, executive director of the Student Debt Crisis Center, warned that this action could be disastrous for borrowers who are already struggling.
"This is a really, really bad time for so many folks," Calazans said, noting that these collections are intersecting with skyrocketing healthcare premiums, high unemployment, and the increasing cost of groceries and other necessities. "It just becomes this huge nightmare for so many families."
According to a fall 2025 survey by The Institute For College Access and Success, Black borrowers and borrowers with associate degrees are disproportionately affected. If you're at risk of default, it's essential to know what to do.
Before default, there's delinquency. Missing a payment deadline can lead to delinquency, which is reported to major credit bureaus. This can make it challenging to obtain credit cards, rent an apartment, or buy a home.
To prevent this, ensure your contact information is up-to-date in both your loan servicer and Federal Student Aid accounts. This will help you stay informed about payment deadlines and changes to your loan status.
If you're already behind on payments, there are options available to help. Loan rehabilitation involves making nine payments over a 10-month period to bring your loans out of default. Consolidation is another option, which creates a new loan and puts you back into good standing.
However, beware of the SAVE plan, which was recently discontinued by the Trump administration. This move has left many borrowers struggling with their debts.
If you receive a notice of wage garnishment, you can appeal the decision through the federal default resolution group. However, this process may soon change.
The Illinois Student Loan Ombudsman office and representatives in Congress can also provide assistance if needed. "The default resolution group is supposed to help you," Calazans said. But if that doesn't happen, lawmakers' offices can intervene.
In light of these developments, borrowers are advised to take immediate action to prevent wage garnishment or get out of it. By being proactive and informed, Illinois residents can navigate this challenging situation and find a way forward.
. The whole student loan thing was already super stressful before Trump's administration decided to revive wage garnishment. I mean, can you imagine having to deal with that on top of everything else? 
It's like they're trying to make life harder for people who are already struggling.
The SAVE plan was discontinued, which is a huge mistake in my opinion. It's like they're abandoning these people who are already in a tough spot.
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it's not just about the money, it's about how they'll get their w wages cut 
sabrina calazans said it straight out - this is a huge nightmare for families already struggling with healthcare premiums, unemployment, and groceries 
so yeah, pls spread the word if u know someone who's behind on loans tell them to check their loan servicer and fa accounts 2 see if they can get delinquency updates 
and btw, beware of that save plan - it's not good news for borrowers 
The government's decision to restart student loan collections is like throwing you on the highway with no GPS - you're gonna get lost in debt! 
You gotta stay ahead of the game, keep your financial info up-to-date, and don't let those interest rates get outta control. Don't wait till it's too late, 'cause wage garnishment can be a real life-sucker 
. And if things get tough, there are people who care (like the Illinois Student Loan Ombudsman office) and resources available to help you navigate this financial storm 
!
. It's like they think everyone has an extra paycheck to dip into 
. 170k Illinois residents are about to get their wages taken away, and it's gonna be super stressful for them... not cool, guys 
. I remember when my student loan debt was super high and I felt so overwhelmed, but at least I knew there were options out there... now it seems like they're just disappearing one by one 
.
. We need to do better, folks! We need to make sure everyone has access to affordable education and debt relief options, not just a bunch of bureaucratic hoops to jump through 
.
Oh man, this is some crazy stuff. I'm all about the nostalgia vibes, but student loan debt has been a thing since forever... unfortunately 
. It's like, how did we get here? These collections are gonna hit people hard, especially those already struggling with healthcare premiums and job instability 
. It's like, don't we learn from our mistakes or something?
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This is a super concerning development for many people in IL who've been struggling with student loans 
Just saw the news about the Trump Admin's plan to restart student loan collections in IL! I'm low-key freaking out for those 170k ppl who are already behind on payments 
. I mean, I know the government has been doing a lot to help with COVID-19, but now it's time to think about the future, right? I feel for Sabrina Calazans and her team at the Student Debt Crisis Center - they're trying to warn people about this impending disaster 
. These new rules are already causing a lot of stress for people who are struggling to make ends meet.
. If you're at risk of default, don't panic! Look into those loan rehabilitation programs or consolidation loans... and if all else fails, reach out to those lawmakers' offices for help 
.
. These new rules might be a big deal, but we can face this challenge together